At December 31, 2014 Mohling Company's Inventory Records Indicated a Balance

question 244

Multiple Choice

At December 31, 2014 Mohling Company's inventory records indicated a balance of $602,000. Upon further investigation it was determined that this amount included the following:
-$112,000 in inventory purchases made by Mohling shipped from the seller 12/27/14 terms FOB destination, but not due to be received until January 2nd
-$74,000 in goods sold by Mohling with terms FOB destination on December 27^th. The goods are not expected to reach their destination until January 6^th.
-$6,000 of goods received on consignment from Dollywood Company
What is Mohling's correct ending inventory balance at December 31, 2014?

• A) $490,000
• B) $596,000
• C) $410,000
• D) $484,000

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Definitions:

Repayment Capacity

A measure of a borrower's ability to repay both the principal and interest on a loan.

Earnings Benchmarks

financial targets or standards used to evaluate a company's performance, often compared against past achievements or industry averages.

Firm's Stock Price

The market value at which shares of a company's stock are bought and sold.

Real Actions

Legal actions concerning property rights and interests in tangible property.